How to Reduce Your Jira Costs

Figuring out the most cost effective way to buy your Jira licenses can be overwhelming amongst all the noise in the space. It’s becoming increasing important to keep an eye on subscription costs, with price increases and structure changes being as common as they are amongst many service providers. As Atlassian Solution Partners, we have extensive industry knowledge and a top tip to help.

Default Jira License model

By default, Jira is priced using a named user license model, so each registered user is assigned a license. The price you pay is determined by the user tier your fall in to.

Using this example from the Atlassian website (August 2025): 1001 Jira Cloud users fits into the 1,001 – 1,200 user tier at $120,000 per annum on the premium plan. But if you had just 1 less user, you’d pay $103,000 instead. So it's ever important to keep your licenses streamlined, ensuring you get the most efficient use out of your Jira spend.

Be mindful of your user count

It pays to be aware of your user tier surplus before adding new users turns into a costly affair. Removing users that no longer need their license is one way to help, but this can be a time consuming process especially if you have 1000s of users. What if there was a better, automated way?

How You Can Save up to 40%

Intelligent User Manager (IUM) is our Atlassian Approved license optimization solution that restructures your licenses. As mentioned, Atlassian’s default named license model requires 1 license per user, but it doesn’t have to be this way. Our groundbreaking technology adopts a floating license model. Your users are dynamically and simultaneously assigned a license when they log on to Jira, which returns to float once the user is inactive.

Audit, test, save

We work closely to audit your instance, discovering how many of your users are ever active at the same time, aka your concurrent usage. Typically this is 20% of total users. You can then subscribe to a lower Jira tier that’s aligned with your true usage, reducing your Jira bill up to 40%.

Stay in control 

IUM is highly configurable, from power users who remain with individual licenses to granular conditions for a user to be deemed momentarily inactive. What’s more is that end user experience is unaffected: Users can always be tagged, assigned tickets and receive email notifications. There is also no limit to how many times a user can change from active to inactive in a certain time period. 

Utilize Atlassian’s user tiers and downgrade to a tier where your concurrent usage falls at the bottom of the tier. This allows for hassle free new user adding, whilst still enjoying those all-important cost savings.

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